Genstar has deal to purchase Nevada City-based Telestream

Genstar Capital, the San Francisco private equity investment firm, says it has an agreement to purchase Telestream Inc., the Nevada City-based producer of high-tech digital video tools and systems.

Financial terms of the deal were not disclosed.

Dan Castles, Telestream’s co-founder and CEO, said in a statement: “Genstar’s mid-market focus and deep expertise in the software industry will enable Telestream to further accelerate our growth.”

Under terms of the pending purchase, Telestream will continue to operate as an independent entity with existing management teams continuing on in their current roles. The company’s headquarters will remain in Nevada City.

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Eli Weiss, managing director at Genstar, said in a statement that his company “has been following Telestream closely, and this acquisition is consistent with our strategy of investing in vertical market software companies.”

Telestream products are used by media companies and television networks, including CBS, CNN and Fox, and its high-definition replay technology has been used by the nationally popular NASCAR Sprint Cup auto racing series.